This paper examines the conditions under which a representative agent (RA) model can accurately approximate the output of a multi-agent model that assumes many interacting agents. The study compares the widely used Keynesian cross diagram, which …

In this paper, we argue that not all economic interactions can be simulated. Specific types of interactions, instantiated in and instantiating of institutional structures, are embodied in ways that do not admit entailing laws and cannot be …

A surge in banks’ liquidity needs increases settlement costs that could burden the functioning of the real economy through its impact on banks’ lending behavior. A liquidity saving mechanism (LSM) can help reduce banks’ liquidity needs, but it …

In the wake of the COVID-19 pandemic, the Government of India imposed production restrictions on various sectors of the economy. Prima facie there is reason to believe that the cost of the quantity constraints may be greater than their simple sum.

The monetary policy operations of a central bank (CB) involve allocation decisions when purchasing assets and taking collateral. A green monetary policy aims to steer or tilt the allocation of assets and collateral toward low-carbon industries, to …

Recent trends in the market for corporate bonds -such as its increase in size, the significant presence of low-quality debt instruments and the trading activity of non-financial corporations- call for the need of an investigation of the possible …

Inspired by macroeconomic scenarios, we aim to experimentally investigate the evolution of short- and long-run expectations under different specifications of the fundamentals. We collect individual predictions for future prices in a series of …

I introduce parameterised response zero intelligence (PRZI), a new form of zero intelligence (ZI) trader intended for use in simulation studies of the dynamics of continuous double auction markets. Like Gode and Sunder’s classic ZIC trader, PRZI …

Emergent behavior in repeated collective decisions of minimally intelligent agents—who at each step in time invoke majority rule to choose between a status quo and a random challenge—can manifest through the long-term stationary probability …

In this article, the author name Slađana Pavlinović Mršić was incorrectly written as Slađana Pavlinović Mršć.

In this paper, we model an evolutionary noncooperative game between politicians and citizens that, given the level of infection, describes the observed variety of mitigation policies and citizens’ compliance during the COVID-19 pandemic period.

Contrary to the near-global consensus among the scientific community, public perceptions of climate change differ between nations and have fluctuated over time. This article develops a switching-strategies growth model to study such a stylised …

We introduce and discuss a system of one-dimensional kinetic equations describing the influence of higher education in the social stratification of a multi-agent society. The system is obtained by coupling a model for knowledge formation with a …

Incentive contracts often do not govern all task elements for which an employee is responsible. Prior research, particularly in the tradition of principal-agent theory, has studied incomplete incentive contracts as multi-task problems focusing on …

This paper uses multivariate Hawkes processes to model the transactions behavior of the US stock market as measured by the 30 Dow Jones Industrial Average individual stocks before, during and after the 36-min May 6, 2010, Flash Crash. The basis …

In this paper, we propose a simulation framework to assess systemic risk in over-the-counter derivatives markets. We incorporate credit valuation adjustment (CVA), a mark-to-market estimate of counterparty credit risk booked on a bank’s balance …